Directive (EU) 2019/713 on combating fraud and counterfeiting of non-cash means of payment and replacing Council Framework Decision 2001/413/JHA

What it is

to effectively combat fraud and counterfeiting of non-cash means of payment. PROPOSED ACT: Directive of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: fraud and counterfeiting of non-cash means of payment (including payment cards) is a threat to security: The Committee on Civil Liberties, Justice and Home Affairs adopted the report by Sylvia-Yvonne KAUFMANN (S&D, DE) on the proposal for a directive of the European Parliament and of the Council on combating fraud and counterfeiting of non-cash means of payment and replacing Council Framework Decision 2001/413/JHA. The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the Commission's proposal as follows. Subject matter : the proposed Directive shall establish minimum rules concerning the definition of criminal offences and sanctions in the area of fraud and counterfeiting of non-cash means of payment. According to Members, it shall also facilitate the prevention of such offences, assist and support victims and improve cooperation between judicial and other competent authorities. Offences : Members request that the following be made a punishable criminal offence: theft or other unlawful appropriation of a payment instrument when committed intentionally; counterfeiting or falsification of a payment instrument, when committed intentionally, in order for it to be used fraudulently; procurement for oneself or another, including import, export, sale and transport, distribution of a payment instrument which has been stolen or otherwise unlawfully appropriated or of a payment instrument counterfeited or falsified, when committed intentionally, in order for it to be used fraudulently · possession of a stolen or otherwise unlawfully appropriated , or of a counterfeited or falsified, payment instrument, knowing at the time of receipt that such instrument is derived from criminal activity or from an act of participation in such an activity; · that performing or having someone else perform a transfer of money, monetary value or virtual currencies, in order to make an unlawful gain for the perpetrator or a third party, or causing an unlawful loss of property for a third party, is punishable as a criminal offence, when committed intentionally by directing or redirecting payment service users to imitation websites . Penalties : offences related to the fraudulent use of payment instruments and those related to information systems shall be punishable by a maximum term of imprisonment of at least 4 years (rather than 3 years). Offences related to the use of devices, computer data or other means specifically designed to commit the offences shall be punishable by a maximum term of imprisonment of at least 3 years (rather than 2 years). For legal persons, penalties shall include temporary or permanent exclusion from access to public funding, including tender procedures, grants and concessions, both at national and Union level. The fact that an…

Frequently asked